Tax updates: Stoppage Order

What is Stoppage order?
Stoppage Order is a travel ban order imposed by Director General of Inland Revenue Board which prevents tax defaulters from leaving the country. It is imposed on taxpayers who fail to settle their income tax/ real property gain tax/ corporate tax. The enforcement rule for stoppage order is carried out under Section 104 of the Income Tax Act 1967/ Section 22 Real Property Gain Tax Act 1976.

What to do if you are stopped from leaving Malaysia?

• to revoke the stoppage order, taxpayers need to pay full amount stated.
• to get a temporary release, tax payers need to do the following: 

           - make payment of at least 50% of outstanding tax amount and arrange for                 
             installment for the remaining balance;
           - taxpayers or representative need to go to Malaysian Inland Revenue Board ("MIRB")   
             branch that handles the taxpayer's file at least 7 days before travelling abroad; and
           - submit an application letter which includes destination, purpose and duration
             of overseas travel.

• temporary release letter will be issued to taxpayers which state the duration that taxpayers are allowed to travel overseas.

Where to check if you are stopped from leaving the country?
For Malaysians, please visit http://sspi.imi.gov.my/sspi/

For foreigners, you will need to contact the MIRB branch office to check the status of stoppage order.

If you need further clarification or information, please contact us by dropping us an email. 

Source:
http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=5&bt_posi=6&bt_unit=1&bt_sequ=1